eCommerce in SE Asia

As a result of the global scenario that has affected everyone for almost three years now, businesses have had a difficult time doing business. Despite unfavorable market conditions, Thailand has seen steady growth in its eCommerce market.

In this episode, Nuttapon Boonpinon of nsquaredasia discusses how he found opportunities in rising inflation and shrinking buying power. He talks about eCommerce platforms that have contributed to Thailand's fast eCommerce performance and how influencers and brand partnerships have given it a new shape. Interestingly, he also made personal forecasts on the market players at the forefront of Thailand's eCommerce arena three years from now, including its percentage estimate for retail sales each year.

You'll learn:

• A backstory of what led to the creation of [03:01]
• One notable observation about Thailand's E-commerce in the past year or two[08:40]
• The reason behind quick E-commerce proliferation [where grocery items are concerned] in Bangkok[14:59]
• Influencers and partnerships are giving steady rise to E-commerce business in Thailand[20:19] 
• Becoming TikTok shop's leading partner in Thailand and how this platform has shown authenticity in its content and provide a measurable way of tracking a brand's marketing efforts [27:45] 
• Percentage estimate of eCommerce retail sales in the next three years [32:29]
• Recommended eCommerce platforms for startup brands looking to do business in Thailand[36:41]

What was mentioned:

• Nuttapon Boonpinon: Website/ TikTok
• 2C2P
• Shopify
• Woocommerce

Ideas worth sharing:

"In the first month, we started online selling, we had USD200 in sales, and now we have become more than 120 million US per year. It has been quite a journey." - Nuttapon Boonpinon

"What we see is that with the lower spending power of the customer, we see an opportunity as well. People are more cautious about their spending. Both shrinking wallets and inflation have heavily hit the big-ticket items. But the greater E-commerce adoption has brought us to what I call the final frontier of E-commerce which is grocery. It has low-value density, and this sector, food, and beverage have been growing tremendously from 40 to 50% and is still growing at the same rate as last year." - Nuttapon Boonpinon

"Tiktok is a good platform in terms of creating demand." - Nuttapon Boonpinon

"One thing I noticed about the TickTok shop platform is, they're non- subsidized for a long time. This is healthy as well. TikTok shop in Thailand, I believe in August, they start collecting a payment fee of 3%. It indicates that from October, they start collecting their commission fee."  - Nuttapon Boonpinon

"I believe Tik Tok got it right to integrate the social and transactional parts seamlessly so you can enjoy swiping through their videos." - Nuttapon Boonpinon

"[With TikTok] not only is where a creator can earn money directly if not indirectly. With sponsorship, a creator can earn direct commission from the brand, which is the most effective way for brands to measure their marketing efforts through real user-generated content and a pay-per-purchase." - Nuttapon Boonpinon

"In three years, eCommerce penetrate sales percentages as around 20 to 25% share of retail sales. We see growth at an estimate of about 20% each year." - Nuttapon Boonpinon

"In Thailand, we expect to see the main two marketplace players, Shopee and Lazada will still be the duopoly. I see no imminent market player. But Tik Tok would be in the same scale and size as that of Shopee and Lazada today." - Nuttapon Boonpinon